Hi friends hope you are well in welcome to the new update on TRX coin. The Tron coin has another significant event on the 17th of August as announced by the Justin Sun on his Twitter handle and that is the Tron’s version of Uniswap called Justswap.
The Justswap is basically an alternative to the Ethereum based Uniswap and it is Tron based protocol that will be helpful to provide solution to the decentralized liquidity issues on the Tron network.
Are there any effects of this announcement?
Now let's watch what kind of effects of this announcement can be. If We move to the coinmarketcap then it can be easily observed that when this announcement was added on the 21st of July the market cap of Tron was 1.17 billion dollars. And on the very next day it was increased by 1.19 billion dollars and at this time it is at 1.31 billion dollars. So it means that the market cap has been increased by more than 11% and every day it is increasing.
The priceline is bounced from the channel:
Now if we move to the live daily chart. Then we can see that the price line is still moving in an up channel as we have already seen this movement is my previous article as well. Recently it is bounced from the support of this channel. I have also placed the exponential moving averages with the time period of 10 and 21 and the price action is using them as good support. If we watch that directional movement indicator then a positive directional indicator has crossed up the negative directional indicator that is another bullish signal indicating that this time the price action might again reach the resistance of this channel.
The bull cross is expected between SMAs:
If we place the simple moving averages with the time period of 25,50, 100, and 200 on the same daily chart then the price line has recently bounced from the 25 simple moving average. Now there is a bull cross expected between the 100 and 200 SMAs. Once the 100 simple moving average will cross up the 200 SMA then it will be another powerful bullish sign and it can be a big invitation to many traders to buy TRX coin more.
A big descending triangle:
Now if we switch to the long-term weekly chart then it can be noticed that price action of TRX is at the resistance of a very big descending triangle having strong supports of 50 and 25 simple moving averages. I have also placed the volume profile on the complete price action moving within this triangle that is showing low trader’s interest at the support of this pattern and from the upside, the trader’s interest is increased even above the resistance level. Therefore we can expect a break out very soon. However, there is a 100 simple moving average resistance above the resistance of a triangle that can stop the priceline for the breakout.
Ichimoku cloud on the weekly chart:
Now I would like to draw your attention towards a very big expected bullish move and that is the Ichimoku Cloud on the weekly chart. At this time the price line is entering the bearish cloud and we have already seen at the same time the priceline is also trying to break out the resistance of the triangle. If the price action of Tron will be able to break out the resistance of the triangle then it is possible that it will be able to break out the resistance of this bearish cloud as well. This cloud is getting squeezed and showing that soon it will be turned bullish.
Even though the price line is entering in the bearish cloud on the long-term weekly chart. But before moving to the upside the price action of TRX needs to break out the up channel on the daily chart and then the resistance of the triangle on the weekly chart as well. If the price action will be failed to break out the channel’s resistance then we can expect another downward move up to the support of the channel.
Note: This idea is education purpose only and not intended to be investment advice, please seek a duly licensed professional and do you own research before any investment.
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